Levi & Korsinsky, LLP Investigates Possible Breach of Fiduciary Duty by the Board of Allis-Chalmers Energy Inc. - ALY

Levi & Korsinsky is investigating the Board of Directors of Allis-Chalmers Energy Inc. (“Allis-Chalmers” or the “Company”) (NYSE: ALY) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Seawell Limited (“Seawell”) (NOTC: SEAW). Under the terms of the transaction, Allis-Chalmers shareholders will have the right to elect to receive either $4.25 in cash or 1.15 Seawell common shares for each share they own, subject to pro-ration if more than 35% of the shares elect to receive cash, placing the total value of the transaction at approximately $890 million (including assumed debt).

The investigation concerns whether the Allis-Chalmers Board of Directors breached their fiduciary duties to Allis-Chalmers stockholders by failing to adequately shop the Company before entering into this transaction and whether Seawell is underpaying for Allis-Chalmers shares, thus unlawfully harming Allis-Chalmers stockholders. In particular, Allis-Chalmers stock traded at $4.57 per share as recently as January 14, 2010 and at least one analyst set a price target for Allis-Chalmers stock at $7.00 per share.

If you own common stock in Allis-Chalmers and wish to obtain additional information, please contact Joseph E. Levi, Esq. either via email at jlevi@zlk.com or by telephone at (212) 363-7500 or visit http://www.zlk.com/allis-chalmers-aly.html.

Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.